Renting to College Students (24k opportunity)
A friend of my parents has a son in college, and came to me asking if I knew of anything to rent close to the school. I have a rental I am finishing up, but have put nicer finishes in it planning to not rent to college students. These students will be freshman, and are "planning" to rent together for 4 years. Having been young at one time, I know this is not a reality. However, I do see it happening for 1 year.
It is a duplex 4/1.5 down and 2/1 up. Fenced in side yard, single car garage in back, parking for 4-5 cars.
In talking to her she had said her son and his buddies are looking for a place to rent, they had all planned to take extra money from their loans and pay their rents a year in advance. I was unsure about renting it to students because of the finishes I chose. Knowing her son fairly well, I know he/they will be partying in the house, likely to do 2-3k worth of damage. However she said there are 4 of them, they are all likely willing to pay for a years rent up front. Question being.
In the 4/2 - If you can get $500 a head for a year from each student up front (essentially 6k per student) $24,000 for the year in one payment, knowing it will be trashed, are you doing it?
2. This will likely hurt my chances for tenancy upstairs in the 2/1, unless it rents to students as well.
3. Are you just adding eviction clauses in the lease that have to do with noise complaints, unpaid bills, as well as taking a large deposit for damages?
4. Am I an idiot if I don't do this?
The 4/1.5 would likely rent for $1100/mo with the 2/1 around $750.
I am leaning towards doing this, I am just trying to weigh my short term advantage vs the longer term set back.
Thanks